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Good morning! It's Monday, May 13th. Today’s post looks at a company that makes it feel like you’re waling on clouds.
THE FEATURE
In 2014, Tim Brown, a former professional soccer player from New Zealand, and Joey Zwillinger, an engineer and renewable materials expert from San Francisco, came together with a shared vision: to create a footwear brand that combined comfort, style, and sustainability.
The brand they built, Allbirds, is driven by a commitment to innovation and sustainability. The founders recognized that traditional footwear manufacturing processes were often harmful to the environment, producing large amounts of waste and relying on non-renewable resources. By developing shoes made from natural materials that minimized their environmental impact without compromising comfort or performance, they sought to disrupt the industry and corner a never-before captured market.
Sustainably Comfortable
Allbirds' success lies in its unique approach to footwear design and production. The company's signature material is a proprietary blend of merino wool, which is sustainably sourced from New Zealand sheep, and Tencel lyocell, a renewable fiber made from eucalyptus trees. This combination results in a soft, breathable fabric that regulates temperature and wicks away moisture, making Allbirds shoes incredibly comfortable to wear.
In addition to its wool shoes, Allbirds offers a range of other sustainable footwear options, including shoes made from sugarcane-based SweetFoam and shoes constructed from recycled plastic bottles. Each pair of Allbirds shoes is designed with sustainability in mind, from the materials used to the manufacturing process.
The shoes feature a minimalistic design that eschews flashy logos and embellishments in favor of a clean and understated aesthetic. Inspired by the concept of simplicity, Allbirds shoes are designed to be versatile and timeless, suitable for any occasion and style. With their sleek lines and unassuming appearance, the shoes embody the essence of modern minimalism, allowing the wearer to make a subtle yet confident statement wherever they go.
Rising Success
Over the years, Allbirds has expanded its product offerings to include a wide range of styles for men, women, and children, from sneakers and slip-ons to boots and flats. Since its founding, Allbirds has experienced remarkable growth and success. Since 2019, the company has posted revenue of:
2019: $193 million
2020: $219 million
2021: $277 million
2022: $297 million
2023: $254 million
In 2023, revenue decreased by 14.7% year-over-year due to a lower average selling price and increased promotional activity as they seek to become a household name. Following their Q1 2024 earnings report, Yahoo Finance reported that analysts forecasted a 2024 revenue of $198.6 million, a 17% decline from the previous year.
Despite these challenges, there is hope for optimism as this decrease outpaces the industry wide decrease of luxury goods, which is forecasted at 22% to the end of 2024.
Despite its rapid growth and some challenges over the last two years, Allbirds remains committed to its core values of sustainability and transparency. The company has implemented various initiatives to reduce its carbon footprint and minimize waste, including carbon offset programs and partnerships with environmentally conscious suppliers.
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